Which Paid More In 2016 – House or Job

For most people in Canada’s largest province, owning house was better than having employment in 2016.

“The average home price in all of Ontario rose almost $90,000 in the past 12 months alone, meaning that, for most in the province, their house likely made more than they did last year,” Doug Porter, chief economist with Bank of Montreal, said, in a brief economic note out Friday.

And, let’s not forget, said the economist, your “house didn’t pay income tax.” Gains on principal residences are not taxed in Canada, of course.

The Canadian Real Estate Association said Thursday, the average price of a home sold over the first 11 months of the year was $553,923 in Ontario, compared with $466,604 for the same period a year earlier. The 14.9 per cent annual increase, driven by sales activity in and around the Greater Toronto Area, was the best performance among the country’s provinces.

Porter also took a shot at the naysayers who were worried about oversupply in Toronto’s condo market, noting the market is now seeing double digit annual increases.

“Amid all the noise in Canada’s housing market in 2016, and there was plenty of noise—parabolic gains in Vancouver, then Toronto, the B.C. tax on non-residents, and Ottawa’s moves to damp demand—this may be the most interesting development,” said Porter. Many in the industry bray about a lack of supply as the main cause of white-hot home prices in some major cities; yet, just a few short years ago, the biggest concern many had was the rampant overbuilding of Toronto condos. Turns out we needed those condos, with prices jumping 15 per cent year over year late in the year, averaging over $443,000, or more than an average house in the rest of the country.”

H/T FinancialPost